I recommend the following approach for selecting the right application when a business capability currently lacks technological support, as shown above in Figure 1.

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1. Clearly Define the Business Capability, Its Sub-capabilities, and Desired Business Outcomes

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Before selecting an application, it is crucial to define and describe precisely the business capability you want to support including its children and their business outcomes linked to the objectives of your organization[i]. Understanding these factors will help you choose the right application that aligns with both your immediate needs and long-term objectives.

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2. Map Out Current Business Processes

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Evaluate your current processes that are operationalizing this business capability. What manual steps are being taken, and what are the current pain points? This gap analysis will guide your requirements for an application. Identify areas where automation can reduce time and effort or where a digital solution could provide better insights.

 

3. Research Potential Solutions

 

Once you have a clear understanding of the capability and its requirements, you can begin to research possible applications. Look for industry-specific software that is designed to support your type of business and its unique capabilities[ii]. Consider factors like scalability, ease of integration, and user-friendliness.

 

4. Pilot the Application

 

A pilot phase allows you to test the application with a limited set of users before rolling it out organization wide. This helps ensure that it meets the needs of the business and provides valuable insights on how the application can improve processes.

 

5. Change Management

 

Introducing a new application requires a structured change management approach to ensure a smooth transition and user adoption. Change management helps address potential resistance by involving key stakeholders early, communicating the benefits, and providing necessary training. It also ensures that processes are adapted to integrate the new tool effectively. By managing the human and operational aspects of change, organizations can minimize disruption, maximize user acceptance, and achieve the desired business outcomes from the new application.

 

6. Evaluate ROI and Performance

 

After implementing the application, select the appropriate key performance indicator and continuously evaluate its performance. Is it improving the capability? What tangible benefits are being realized? Monitoring these factors will ensure that the chosen application continues to support your business effectively.

 

Scenario 2: Too Many Applications are Supporting the Business Capability

 

The second scenario arises when there are too many applications being used to support a single business capability. This situation often develops over time as departments or teams adopt different tools to meet their immediate needs, resulting in redundancy, inefficiency, and integration challenges.

 

Multiple applications doing the same thing can lead to confusion and duplication of effort. Too many applications also increase the risk of poor integration, making it difficult to create a seamless workflow between tools. Maintaining and managing multiple applications is expensive in terms of both licenses and IT support. Finally, employees may be unsure which application to use for specific tasks, leading to decreased productivity and frustration.

 

I recommend the following approach to streamline the number of applications supporting the same capability, as shown above in Figure 1.

 

1. Conduct a Capability-Based Application Audit

 

Begin by auditing all applications currently in use to support the business capability. Identify what each application does, who uses it, and how it contributes to the business. Look at how well each application supports the sub-capabilities of the examined capability. Assess the performance of each application for each sub-capabilities of the examined capability and identify which applications are truly necessary. An application rationalization process can help you systematically eliminate redundancy.

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2. Focus on Core Functionality and Usability

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Evaluate each application’s core functionality in relation to the business capability and its sub-capabilities. Are there any applications that offer more than others, making them better suited to be the primary tool? Make sure to consider user feedback to ensure the selected applications are not only effective but also user-friendly. In general, prioritize applications that meet the widest range of requirements with the least complexity.

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3. Consolidate Where Possible

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Look for opportunities to consolidate applications and decommission unnecessary applications. If one or two applications can handle the same tasks as several others, migrating to a smaller set of tools can reduce costs and simplify operations. Many modern business applications are modular and can be configured to handle multiple functions, offering a more integrated and streamlined solution.

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4. Improve Integration and Workflow

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After reducing the number of applications, ensure that they are well-integrated. Poor integration can negate the benefits of reducing your application stack. Use middleware or other integration tools to ensure that data flows seamlessly between applications, creating an efficient end-to-end process.

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5. Change Management

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Consolidating applications and decommissioning unnecessary ones requires careful change management skills to minimize disruption and ensure a seamless transition. Effective change management involves clear communication of the consolidation’s benefits, engaging stakeholders, and addressing concerns about system changes. Providing training and support is essential to help users adapt to the new environment. By proactively managing resistance and ensuring continuity, organizations can streamline operations, reduce costs, and enhance efficiency while maintaining user confidence throughout the consolidation process.

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6. Evaluate ROI and Performance

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As you consolidate applications and decommission unnecessary ones, it’s essential to evaluate the ROI and performance of the remaining applications. Select the appropriate key performance indicators (KPIs) to assess whether the consolidated applications are enhancing the business capability. Are they driving improvements in efficiency and reducing costs? What tangible benefits are being realized?

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7. Establish Governance

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To prevent the proliferation of applications in the future, establish governance policies that regulate how new applications are introduced. This includes a formal approval process, defining application ownership, and continuous monitoring to ensure that new applications do not create unnecessary redundancy.

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Scenario 3: There Are Not Enough or Not the Right Applications Supporting the Business Capability

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The third scenario arises when there are applications supporting a business capability, but they are either insufficient or not the right fit. This can lead to underperformance, frustration, and missed opportunities.

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Here, the current applications may not have all the features necessary to fully support the business capability. Applications may not be optimized for scalability or for the specific needs of the business, leading to slow performance or limited capacity to adapt to changing business conditions. The applications in use may not integrate well with other tools or systems, creating silos of data and limiting the efficiency of operations.

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I recommend the following approach for identifying and addressing gaps within a business capability and its sub-capabilities, as shown above in Figure 1.

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1. Conduct a Capability-Based Application Audit

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As in scenario 2, Start by auditing all applications supporting the business capability. Assess their performance, usage, and necessity, identifying redundancies. Use application rationalization to eliminate overlap systematically.

 

2. Assess Current Application Gaps

 

Start by identifying what the current applications are lacking. Conduct interviews with users and stakeholders to understand the limitations of the current system. What features or functionalities are missing? Are there areas where the current applications are failing to support the business capability?

 

3. Benchmark Against Best Practices

 

Compare your current application environment with industry best practices. What tools are competitors using to support similar capabilities? Are there innovative solutions that you have not yet considered? Benchmarking will help you identify where your applications are falling short.

 

4. Evaluate New Applications

 

Once the gaps are identified, evaluate new applications that can fill them. Look for tools that not only address current deficiencies but are also scalable and adaptable to future needs. Ensure that the selected applications are compatible with your existing systems and can integrate smoothly into your workflows.

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5. Implement in Phases

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Introducing new applications requires careful planning to minimize disruption. Implement new applications in phases, starting with the most critical gaps. This phased approach allows you to monitor the impact of each new tool before expanding further. Additionally, ensure that users receive adequate training to make the most of the new application.

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6. Change Management

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Addressing insufficient or misaligned applications for a business capability requires careful change management to minimize disruption and ensure a successful transition. Effective change management involves clearly communicating the reasons for replacing or upgrading applications, engaging stakeholders, and addressing concerns about new system changes. Providing training and support is critical to help users adapt to the new tools.

 

7. Continuously Monitor and Optimize Performance

 

Even after the new applications are in place, it’s important to continuously monitor their performance. Are they filling the identified gaps? Are users satisfied with the solution? Regularly collecting feedback and data will ensure that your applications remain effective as the business evolves.

 

 

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Selecting the right applications to support your business capability requires a thoughtful, strategic approach tailored to the specific scenario your organization faces. Whether you are dealing with the absence of an application, an overabundance of tools, or insufficient applications, the key is to align technology with business goals and objectives, eliminate inefficiencies, and ensure that your application environment supports long-term success. By defining clear objectives, conducting audits, benchmarking against best practices, and continuously optimizing, you can ensure that your applications fully support your business capabilities and drive meaningful improvements in performance, efficiency, and innovation

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[i] To accelerate the definition of your capability and its sub-capabilities, consider leveraging industry-based business architecture reference frameworks. These frameworks provide pre-defined models that can streamline your work.

[ii] To quickly identify and describe applications that can support your capability, you may want to use industry-based business architecture reference frameworks, that includes a list of commonly used applications aligned with specific business capabilities, offering a valuable starting point for your selection process.